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Factor-Biased Efficiency Gains from Exporting: Evidence from Colombia

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  • Joonkyo Hong, Davide Luparello

Abstract

New exporters often adopt new technology, which may reorganize production rather than lift output uniformly, so efficiency gains can land unevenly across inputs. We examine such gains across worker types in Colombian manufacturing, 1981–1991. We develop a model of exporters that measures how efficiently firms use each input and grounds a comparison of new exporters with non-exporters matched on export likelihood. We find that export entry raises the plant-level efficiency of unskilled labor by about 9.4% per year, with no detectable change for skilled labor, implying a 2% annual rise in total factor productivity. We estimate that the two worker types are complements. Exporters thus produce more with relatively less unskilled labor, raising skill intensity.

Suggested Citation

  • Joonkyo Hong, Davide Luparello, 2026. "Factor-Biased Efficiency Gains from Exporting: Evidence from Colombia," BAFFI CAREFIN Working Papers 26279, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    • Handle: RePEc:baf:cbafwp:cbafwp26279
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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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